1. Attorney-client privilege extended to tax practitioners does not apply to communications with corporate representative concerning tax shelter. 
"With respect to tax advice, the same common law protections of 
confidentiality which apply to a communication between a taxpayer and an attorney shall also apply to a communication between a taxpayer and any federally authorized tax practitioner to the extent the communication would be considered a privileged communication if it were between a taxpayer and an attorney."  However, the privilege "shall not apply to any written communication between a federally authorized tax practitioner and a director, shareholder, officer, or employee, agent, or representative of a corporation in connection with the promotion of the direct or indirect participation of such corporation in any tax shelter (as defined in section 6662(d)(2)(C)(iii)). Internal Revenue Service Restructuring and Reform Act of 1997, '3411 (signed into law July 22, 1998). 

2. Retaliatory discharge of "malingering" employee after her filing of 
workers' compensation claim prohibited.   An injured employee fired after filing a Workers' compensation claim was wrongfully discharged even though the employer believed that employee was fraudulently claiming workers' compensation benefits.  At most, the dispute concerning her disability was a dispute as to the nature and extent of the injury, which is present in every workers' compensation case.  Clark v. Owens-Brockway Glass Container, Inc., No. 5-96-0676, 1998 WL 400046 (5th Dist. July 16, 1998) (original opinion of March 13, 1998 withdrawn).   

3.  Partners not personally liable for partnership debt.  Although all 
partners are jointly and severally liable for debts arising from the injury 
of a third party due to the wrongful act of a partner acting in the ordinary course of the business of the partnership, individual partners against whom no judgment was entered are not personally liable for a judgment entered against partnership.  Johnson v. St. Therese Medical Center, ___ Ill.App.3d___, 694 N.E.2d 1088, 230 Ill.Dec. 810 (2d Dist. 1998). 

4. Lessor's breach of lessee's right of first refusal deserves some remedy. Although the purchaser disputed that the lease was in effect at the time of purchase, when the lessor's estate sold property to the purchaser without honoring the lessee's right of first refusal, the rule that when a small tract on which the lessee has the right of first refusal is part of a larger tract that is sold, the sale may proceed, even if correct, does not mean that the lessee has no remedy.  This case is one of first impression in Illinois, The Retreat, a Not-for-Profit Corporation v. Bell, ___ Ill.App.3d___, 695 N.E.2d 892, 231 Ill.Dec.  119 (4th Dist. 1998). 

5.  Member of bank's board of directors is not an "employee" under Illinois human rights act.   An attorney director on bank's board of directors was not an "employee" even though he received compensation for his services as board member.  The director's role was that of an independent contractor rather than an employee, so that the Human Rights Commission lacked jurisdiction to hear his age discrimination complaint against the bank. Wanless v. Illinois Human Rights Commission, ___ Ill.App.3d ___, 695 N.E.2d 501, 230 Ill.Dec. 1011 (3d Dist. 1998). 

6.  American Legion could not prevent seller's registration of "The 
Legionnaire" for hat.    Even though the American Legion asserted that the use of the name "Legionnaire" as a trade name could cause confusion, it could not prevent a hat seller from registering the name as a trademark for a particular type of hat.  American Legion failed to prove consumer confusion about the source or sponsorship and approval of the hat.  American Legion v. Matthew, 144 F.3d 498 (7th Cir. 1998). 

7.  Claim for retaliatory discharge is not "personal injury" under CGL 
Policy. An insurer's definition of "personal injury" as a claim for other 
than bodily injury arising out of enumerated offenses, such as false arrest, malicious prosecution, slander and libel, and violations of the right to privacy, did not include a claim for retaliatory discharge.  Even the principle of liberal construction of an insurance policy in favor of the 
insured cannot overcome reasonable rules of construction.  Emtech Machining & Grinding, Inc. v. Transcontinental Insurance Co., ___ Ill.App.3d ___, 695 N.E.2d 545, 231 Ill.Dec. 28 (2d Dist, 1998). 

8.  Former division could not sue former parent for environmental cleanup costs.  Even though environmental emissions preceded a division's incorporation and sale by a parent, the division could not seek environmental cleanup costs from the parent.  At its incorporation, the 
division agreed to indemnify the parent, and neither CERCLA or RCRA nor Wisconsin common law could avoid the duty to indemnify.  Truck Components, Inc. v. Beatrice Co., 143 F.3d 1057 (7th Cir. 1998). 

9.  No exception from lien in citation statute for payments made in the ordinary course of business.  Although payments made from corporate accounts by a corporate representative were made in the ordinary course of business, such payments, made after service of a citation to discover assets, were prohibited and in direct violation of the lien and prohibition against transfer contained in the citation.  In addition, a corporate representative's  personal guarantee of corporate loans was evidence that the payments from corporate accounts were of personal benefit to him.  City of Chicago v. Air Auto Leasing Co., No. 1-96-3129, 1998 WL 344037 (1st Dist., June 29, 1998).  

By: Donna J. Cunningham, Cunningham & Colleagues, P.C. 
Telephone: 847/381-2200; Fax: 847/381-9416 
E-mail: cunning@bzlaw.com 
Website: www.bzlaw.com 

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